HOUSE SPECIAL SESSION COMMITTEE ON BUDGET
February 25, 2002 Hearing Room F
9:00 p.m. Tape 3
MEMBERS PRESENT: Rep. Ben Westlund, Chair
Rep. Susan Morgan
Rep. Kurt Schrader
Rep. Lane Shetterly
MEMBER EXCUSED: Rep. Jan Lee
STAFF PRESENT: Adrienne
Sexton, Legislative Analyst
Larry Niswender, Principal
Legislative Analyst
Dick Yates, Legislative Revenue
Office
Annetta Mullins, Committee Assistant
MEASURE/ISSUES HEARD: Public Hearing and Work Session
HB 4035
HB 4033
These minutes are in
compliance with Senate and House Rules.
Only text enclosed in quotation marks reports a speaker’s exact
words. For complete contents,
please refer to the tapes.
|
TAPE/# |
Speaker |
Comments |
|
TAPE 3, A |
||
|
003 |
Chair Westlund |
Calls meeting to order at
9:05 p.m. and opens a public hearing on HB 4035. |
|
HB 4035 - PUBLIC HEARING |
||
|
004 |
Chair Westlund |
Determines no one wishes
to testify on HB 4035. Closes the
public hearing and opens a work session on HB 4035. |
|
HB 4035 - WORK SESSION |
||
|
016 |
Chair Westlund |
Recesses meeting at 9:06
p.m. |
|
016 |
Chair Westlund |
Reconvenes meeting at 9:10
p.m. |
|
019 |
Larry Niswender |
LFO. Submits Revenue Impact Statement (EXHIBIT A). States the bill is identical to the bill passed in the
first special session. |
|
032 |
Rep. Schrader |
Asks if centralized voter
registration will be a reservation in the E Fund. |
|
036 |
Niswender |
Explains that in the last
special session the disappropriation bill established a reservation of $2
million in the General Purpose E Fund for the centralized voter registration
system and it is the expectation that will be repeated in the budget report. |
|
039 |
Chair Westlund |
Comments that it is also
contingent on federal funds. |
|
|
|
|
|
042 |
Nancy Baker-Krofft |
Salem resident, teacher in
Oregon, and parent of son in school. States
that cuts to education are not acceptable.
In many cities, schools have been cut to the bone. Also sees the terrible choices the Salem
School District is trying to make based on the cuts that are planned. States there must be some taxes we can come
up with. If we take money from our
rainy day funds and next year it rains, we will be very wet. |
|
064 |
Rep. Morgan |
MOTION: Moves HB 4035 to the floor with a DO PASS
recommendation. |
|
067 |
|
VOTE: 4-0-1 EXCUSED: 1 - Lee |
|
|
Chair
Westlund |
Hearing no
objection, declares the motion CARRIED. REP.
WESTLUND will lead discussion on the floor. |
|
070 |
Chair Westlund |
Opens a public hearing on
HB 4033. |
|
HB 4033 - PUBLIC HEARING |
||
|
075 |
Chair Westlund |
Informs the committee that
he has a rough draft of the amendment and the committee is waiting for the
amendments from Legislative Counsel. |
|
083 |
Chair Westlund |
Determines no one wishes
to testify on HB 4033. Closes the
public hearing and opens a work session on HB 4033. |
|
HB 4033 – WORK SESSION |
||
|
085 |
Chair Westlund |
Recesses the meeting at
9:18 p.m. to await the arrival of the amendments to HB 4033. |
|
086 |
Chair Westlund |
Reconvenes the meeting at
9:20 p.m.. |
|
082 |
Dick Yates |
Legislative Revenue
Office. Explains graph (EXHIBIT B). States that he used information presented during the
regular session on estimated revenues from the Master Settlement Agreement
and that is the height of the bars, the total revenue that is forecast to be
received by the State of Oregon pursuant to the Master Settlement Agreements. About $15.6 million annually will be
required if the OSU bonding goes through.
The dark area in the middle of the chart is the estimate of the
additional payments that would be required to be pledged for a $200 million
issue to provide funds to be transferred to the State School Fund. Adds that how it ends up depends on how
the Treasury eventually structures the issue and over the period of
issue. This is simply one proposal
Treasury is considering. It would
take out about $33 million up to $46 million a year from 2004 to 2012. The balance is the Master Settlement
expected payments that would be available during those years for legislative
appropriation. |
|
123 |
Rep. Schrader |
Asks what the debt service
would be for the first three years. |
|
|
Yates |
Responds it is about $80
million less $35 million and less another $15 million. It is about $30 million. It would be about $15 million for OHSU and $33 million for the
State School Fund. |
|
146 |
Chuck Smith |
Oregon State
Treasury. Comments the numbers
presented by Yates are correct. |
|
143 |
Rep. Shetterly |
Comments this comes into
play only if the voters reject Measure 11 and the HJR 75 referral. |
|
166 |
Smith |
Explains types of
bonds. |
|
|
Rep. Shetterly |
Advises members he has
been notified that the amendments will arrive in 15 minutes. |
|
181 |
Chair Westlund |
Recesses meeting at 9:28
p.m. |
|
181 |
Chair Westlund |
Reconvenes meeting at
10:08 p.m. and announces that the committee has received the amendments for
HB 4033 (EXHIBIT C). |
|
206 |
Rep. Shetterly |
Explains HB 4033-1
amendments (EXHIBIT C). States that Measure 11, the OHSU
capital bond referral, is going out on the ballot. Under that referral
there is a fallback that says if the referral for general obligation bonds
does not pass, the Treasurer is directed to issue tobacco revenue bonds. These are also tobacco revenue bonds. The purpose of the amendments is to bring
HB 4033 together with SB 832 so that if revenue bonds are issued under this
bill and if they need to be issued under SB 832, they will be in parity—of
equal priority so that one does not have precedent over the other for any
purpose. That will help bring the
best rates for both so they are not selling the bonds to bond holders whose
interest may become subordinate to some later issue of bonds. |
|
228 |
Harrison Conley |
Legislative Counsel. States he is comfortable with Rep.
Shetterly’s explanation of the amendments.
States that because we are dealing with SB 832, which is already in
effect, and given the title of this bill, we could not change the superiority
clause in SB 832 as it relates to any subsequent revenue bonds that may be
authorized by the legislature. These
bonds would be in parity with the SB 832 bonds should they be issued. These bonds will be in parity with any
subsequent bonds issued and secured by the same revenue stream. These would not be in parity with any
subsequent revenue bonds the legislature might authorize. |
|
257 |
Kate Richardson |
State Treasury. States the HB 4033-1 amendments are the
work of their staff and Bar counsel and they believe they should work with the
prior bill. |
|
267 |
Rep. Shetterly |
MOTION: Moves to ADOPT HB 4033-1 amendments. |
|
|
|
VOTE: 3-0-2 EXCUSED: 2 – Lee, Schrader |
|
267 |
Chair
Westlund |
Hearing no
objection, declares the motion CARRIED. REP.
WESTLUND will lead discussion on the floor. |
|
270 |
Rep. Shetterly |
MOTION: Moves HB 4033 AS AMENDED to the floor with
a DO PASS AS AMENDED recommendation. |
|
270 |
|
VOTE: 3-0-2 EXCUSED: 2 – Lee, Schrader |
|
|
Chair
Westlund |
Hearing no
objection, declares the motion CARRIED. REP.
SHETTERLY will lead discussion on the floor. |
|
258 |
Chair Westlund |
Adjourns meeting at 10:13
p.m. until approximately 9:30 a.m. on Feb. 26. |
Submitted By, Reviewed By,
Annetta Mullins, Adrienne Sexton,
Committee Assistant Legislative Analyst
EXHIBIT
SUMMARY
A
– HB 4035, Revenue Impact Statement, staff, 1 p
B
– HB 4033, Securitization graph, staff, 1 p
C
– HB 4033, HB 4033-1 amendments, staff, 8 pp